I. Introduction
The rapid and discontinuous changes within and around organisations today has created a more complex and unpredictable workplace situation than ever. As such, the need for effective performance management system becomes inevitable for every organisation in order to ensure that the organisation’s activities and policies are effectively directed to the achievement of organisational goals. Although the discussion around the effectiveness of performance management is still inconclusive (Rheem, 1996; Glendinning, 2002), most of the credible research on this issue has confidently suggested that any organisation with an effective performance management system will have more opportunities to succeed in the business and is more likely to outperform those organisations that do not apply the system (Amstrong, 2000; Mollemen and Timmerman, 2003; Verbeeten, 2007; Biron et al., 2011). This paper will highlight this particular issue by firstly drawing our attention to the key aspects of effective performance management system and then observing the current performance management system practiced in education sector, in this case at Al-Izzah Islamic School where the writer of this paper works for. From this observation, the paper will, then, evaluate the school’s practice by linking and contrasting the information from the literature and the way the performance management practices operate in this particular school.
II. Performance Management: A Theoretical Framework
a. A Conceptual Definition
The constant pressure and challenges facing by organisations today as well as the growing understanding of the importance of human capital as an organisation asset to performance improvement have triggered managers both in public and private sectors to be more mindful and strategic in developing performance management system in their organisations (Nankervis et al., 2008). As many organisations put a greater attention on the importance of performance management, the term performance management is often overly generalized as a performance measurement, rating or appraisal that frequently leads to a narrow perspective and understanding of what performance management is. According to Radnor and McGuire (2004) performance measurement, rating or appraisal is the process of measuring the performance and only one of aspects in performance management; on the one hand, performance management is more holistic that uses performance measurement, rating or appraisal as one of tools to collect information about the goal achievement and other related issues as the basis for managing and improving the performances.
With respect to its objectives and process, performance management can be viewed as an integrated human resource system designed to enable employees to perform their work in a high-quality and efficient manner, to improve their skills and abilities, and to work in a direct support of the organisation’s strategic goals and values (Poteet, 2003; Aguinis, 2007; DeNisi as cited in Biron et al., 2011). It is a continuous process of improvement, not annual, and requires supporting leadership that can demonstrate good performance, objectively observe others’ performances, appraise it and provide on going feedback (Nankervis et al., 2008). In a more specific, the performance management cycle generally involves; planning work and setting expectations; continually monitoring performance; developing the capacity to perform; periodically rating performance in a summary fashion; and rewarding good performance (the U.S. Office of Personnel Management, 2001; Poteet, 2003).
b. An Effective Performance Management System
Although a number of studies have yielded a compelling result of the positive impacts of performance management, many managers and principals apparently still get difficulties of how to effectively conduct and apply a performance management in their organizations (Glendinning, 2002; Hazard, 2004). In addressing this issue, it is critical accordingly for the manager or principal of any organisation to understand both the critical factors that support an effective practice of performance management system and those that distract the effective application of this program.
One of good research on this issue was conducted by Antonioni (1994) who indicated that an effective performance management system might be affected by four critical conditions. First, the managers or principals should be mindful that the employees are the internal customers of the performance management system. Accordingly, they should be involved in the development process of the system. Moreover, the feedback given for their performances should also come from multi sources, not only from the managers or principals but also from other internal customer members and external sources stakeholders such as students, parents, clients and so on. In this respect, Nankervis et al, (2008) also indicated that employees are more likely to accept and be satisfied with the performance management system when they have the chance to participate in the designing and development process, particularly in developing the rating or appraisal system.
Second, an effective performance management system should ensure that the system and structure within the organisation are supportive and appreciative to any positive achievement performed by the teachers or staff by providing clear measurement standard, expectations and fair reward scheme or system. In line with this, Verbeeten (2008) working in a public sector revealed that the definition of clear and measurable goals is positively related to both quantity and quality of staff’s performances. Moreover, Biron, et al. (2011) also concluded that the staff and teachers will be much motivated in performing their duties that they perceive clearly measured and fairly rewarded..
The third caveat in developing an effective performance management system is that by restructuring the traditional relationship; superiors-subordinate, between managers and staff or between principals and teachers. An effective performance management system views managers and staff relationship as collegial partnership which is based on mutual respect and trust. The fourth suggestion for developing an effective performance management system is that by involving the teachers and staff to take an active role and involvement both in designing the system in general and in developing their individual expectation and needs that supports the achievement of the organisation goals. In this respect, Poteet (2003) also maintained that making employees to be more responsible for managing their own performances and improving their own skills will improve the employees' accountability for performing their duties.
The latest empirical research on effective employment of performance management system was carried out by Biron et al. (2011). By using the signalling theory or the strategies used by the organisation to influence perception and behaviours of the employees, they concluded that successful application of performance management should be contingent upon four critical factors; how well both the strategic and tactical goals of performance management are embedded and integrated in daily operation and reward system; the active involvement of the senior managers in the performance management system; effective communication during the implementation and effective use and selection of rating procedures using multi rating sources as suggested by Antonioni (1994) and 360 evaluation or feedback instead of the formal trainings of the raters.
III. Linking Theories to Practices: Performance Management Practice at Al-Izzah Islamic Boarding School
a. School Background
Al-Izzah Islamic School is a fast growing and privately-funded school located in East Java, Indonesia. It was officially established in 2006 and is committed to provide an alternative education at the secondary and high school level. The school’s mission is to create a learning community providing a holistic education and it maintains a strong vision to become a leading and world-class institution (Lpmi Al-Izzah, 2011). Presently the school has 350 students and more than 50 full-time teachers and supporting staff who are dominated by young learning professionals. As a brand new institution, it has gained a good reputation particularly for its initiatives in learning and educational management in the region. With respect to the school leadership and culture, at the moment the school is led by a visionary leader with strong commitment for developing world class Islamic school. In addition, as the school maintains holistic education, the school’s principle values including sincerity, honesty, respect, professional and collaboration are reflected in workplace situation (Lpmi Al-Izzah, 2011).
b. Performance Management Practice in the School
As a newly established institution, Al-Izzah Islamic school seems to be ambitious and distinctive in pursuing its mission and objectives indicated by its commitment to infuse the performance management system in the school in 2008. Generally, the performance management process in the school can be grouped into four time strands every year.
In the first term from July to September, the performance management is initiated by setting the goals of the teachers and staff and discussion session with the human resource team. To do so, human resource manager distributes the goal setting form to every teachers and staff and invites them to complete the forms a few days before they discuss it with the principal and human resource manager in the scheduled time. To complete the goal setting form, the teachers and staff are required to formulate their individual professional goals for the next one year; identify the strategies and efforts they will use to achieve those goals; and identify their potential strengths and weaknesses that might affect the achievement of the designated goals.
In the second term, the human resource manager conducts a progress check or evaluation-1. In this phase, the teachers and staff are invited to explain their goals achievement so far; the emergent challenges that they face as well as actions to solve them; the supports or trainings they need and other related issues. In the third cycle, the school or deputy principal conducts a direct observation and interview (evaluation-2) for the teachers and staff and provides feedback based on the observation check list.
In the last term, the human resource management distributes a performance appraisal form or rubric to the teachers and staff. During this term, the human resource manager also collects information both from the curriculum coordinator and peer teachers or teaching coordinator. The result of this information will be consulted during the above meeting. Based on this multi source data, the reward and sanction is given. The summary of the four cycles discussed in this section is presented in the following table.
Table: Summary of Performance Management Cycle at Al-Izzah Islamic Boarding School
| Terms | Activities | People Involved |
| Term 1 (July, Augt, Sept) | Goal setting | HRM team |
| Term 2 (Oct, Nov. Dec) | Evaluation -1 (interview): Goals achievement so far? What are the emergent challenges (constraints)? What actions to solve them? What supports (trainings/mentoring/coaching) required? | HRM team |
| Term 3 (Jan, Feb, March) | Evaluation-2 (observation and interview): Classroom visits and feedback interview | School /deputy Principal |
| Term 4 (April, May, June) | Performance measurement: completion of appraisal form and interview Information gathering from multi rater sources Reward and consequences | · HRM team · School Principal · Deputy Principal · Curriculum Coordinator · Teaching Coordinator or peer teachers and staff |
c. Evaluation of the Performance Management Practice in the School
During the three years of application, although the above four cycles are not always performed and conducted as exactly as expected, the performance management system in the school has given a valuable contribution to the school development. Several positive strengths possessed by the current performance management application in the school include:
1. Clear performance management cycle as described in the earlier section.
2. The individual goal setting performed by teachers and staff.
3. Involvement of multi rater sources or the key people involved in the performance management process including the human resource team, school or deputy principals, curriculum coordinator, teaching coordinator or peer teachers and staff.
4. Availability of the performance management instruments required during the process including; the goal setting form, observation check list and appraisal rubric.
5. A supporting schools condition including adequate number of teachers and staff with relevant qualifications, school’s infrastructure and resources.
In addition the above positive conditions, a critical evaluation of the current performance management practice in the school also reveals several critical issues that should be considered in order to improve the current performance management practice in the school. The identified issues are:
1. The individual goal setting is not directly linked to the schools’ mission and strategies.
The current performance management practice particularly in the goal setting process seems to be less focus on the school’s mission, goals and strategies. The indication of this occurrence can be recognized when most of the goals set by teachers and staff much focus on the individual expectations and goals without a clear link to the school’s mission and strategies whereas Amstrong (2000) and Aguinis (2007) indicated that in addition to decision making purposes, an effective performance management system should be designed to achieve its organisational strategic objectives by linking the individual goals of the teachers or staff with the those determined in the strategic plan. Moreover, Biron et al., (2011) also asserted that the successful application of performance management system is largely determined by the successful alignment of the individual interests and organisation’s strategies leading to the improved organisational performances. Nankervis et al., (2008), further, maintained that performance management as a part of strategic human resource management should be congruent with the organisational strategic objectives and mission without which the organisational objectives will be difficult to achieve.
In tackling this issue, it is critical that prior to the individual goal setting, the teachers and staff should given an opportunity to analyze and understand the mission and vision of the school and more importantly to understand the designated organisational objectives and strategies outlined in the strategic plan. In this way, it is expected that the teachers will be able to link their individual goals to the organisational objectives thus enhancing the improvement of both individual and organisational performances.
2. The expectation and standard of measurement are neither clear nor well communicated to the teachers and staff.
As noted in the preceding section that an effective communication particularly between the managers and teachers or staff is a critical element for effective utilisation of performance management system (Biron et al., 2011), however, the current practice in the school indicates that the expectation and standard of measurement set by the school are not clearly understood by teachers and staff. This happens as they are not adequately informed and recognised what are the successful indicators from their performances as well as the current situation of the organisation. Accordingly, it is likely to occur that at a particular point, teachers and staff will feel frustrated and less motivated in accomplishing their duties. In this regards, Antonioni (1994); Verbeeten (2008); and Biron et al. (2011) informed that a clear expectation and measurement standard is clearly related to improved staff’s motivation and commitment leading to both improved individual and organisational performances. Teachers and staff who know what they are aiming for will be more motivated and persistent and exert more efforts in accomplishing their duties that results in improved performance, and vice versa.
In dealing with this issue, it is suggested that there should be more active teachers and staff’s involvement in the development of measurement standard. Poteet (2003) has suggested that an effective performance management development is a collaborative effort between the manager or principal and employees or teachers. Furthermore, getting employees involved in the performance development process will help them understand the goals of the organisation, what needs to be done, why it needs to be done, and how well it should be done (the U.S. Office of Personnel Management, 2001). Other strategies to communicate expectation and standard of measurement are by effectively (1) using the supervisory feedback to communicate the desired organisational objectives and expectation; (2) using scheduled programs to inform current organisation situation and upgrade teachers and staff’s skills and capability; (3) using available communication tools such as school website, intranet newsletters, and notice boards to convey information about the school current agenda, programs, priorities and targets, and other useful information (Biron et al., 2011, p. 1304).
3. The performance management system focuses more on the tactical goals rather than strategic goals.
Another more critical issue of the current performance management system practiced by the school is the main focus or objective of the performance management system itself. At the outset, it is obvious that the current system is directed more to achieve the tactical goals that is to provide information useful for making human resource related decision makings such as payment scheme, rewards and recognition, and termination rather than to achieve the strategic organisational objectives whereas a recent study carried out by Biron et al. (2011) revealed an opposite direction that is the goals of performance management system employed by most successful organizations are more focused on the strategic goals rather than the tactical ones. As the result of this misleading direction, the current performance management system in the school seems to be overly emphasized on the performance appraisal or rating and neglect other important aspects of performance management such as monitoring of the process, ongoing feedback, and sustained professional development of the teachers and staff; while, Biron et al. (2011) maintained that an effective performance management system should be more directed to competence development than merely performance checking or rewards and punishment.
To tackling the issue it is suggested that the school sets a clearer objective of the current performance management system. The information outlined above does not indicate that the tactical goals are no longer relevant. Instead, it informs us that in addition to tactical goals there is still another critical goal; strategic goals, which is more powerful and valuable in assisting the school to achieve its mission and objectives and; therefore, it should be more emphasized rather than the tactical goals.
IV.Conclusion
Performance management is a holistic system aimed at improving organizational performances. The successful application of performance management is still relatively different among organisations and is highly reliant upon particular conditions and strategies where the performance management employed. Several studies have suggested that successful application of performance management can be enhanced through involving employees in the development process, using multi rating sources, promoting collegial relationship, and setting clear expectation and measurement standard. In the meantime, a more recent study emphasized on the importance of strategic and tactical goals, communication, and role of senior managers in supporting the system. At Al-Izzah Islamic school, the application of performance management system has given a valuable contribution to its development. Despite its strengths, a critical evaluation has revealed three areas of development; the link between individual and organizational goals, the clearer expectation and measurement standard, and the objectives of the performance management system. Finally, since the effectiveness of performance management remains inconclusive and relative to particular conditions, there is still a need to conduct further research on this issue particularly in the education sector.
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